Daily Briefing November 25 2019
Free to read: International Group told to slim down | Podcast: The view from Hong Kong and Dubai | IMO opens up | Beyond the tear gas in Hong Kong | Chinese coal import restrictions hurt bulk carrier demand | Fuel price spread hit record this month
Good morning. Here’s our quick view of everything you need to know today.
The Lloyd’s List Daily Briefing is brought to you by the Lloyd’s List News Desk.
What to watch | Analysis | Opinion | Markets | In other news
What to watch
The International Group of P&I Clubs should reduce its number of affiliates from 13 members to no more than eight, enabling more efficient use of capital and thus lower pricing, according to a report published by a top broker. The same report also reveals how clubs are grappling with the question of whether excess passenger liability is a mutual P&I risk. Meanwhile, revisions to the International Group Agreement announced last week will significantly free up charterers’ business, and were not motivated by any external pressure from competition watchdogs, the chief executive of the International Group has insisted.
Seaspan is diversifying into the power sector. The containership lessor will spend $750m acquiring a leading lessor of turbines and generators but the reorganisation is intended to help with strategic capital allocation initiatives.
Analysis
The head of the US marine solutions, energy and logistics company Crowley Maritime says it shines most brightly when there’s a big challenge, whether it be an earthquake, a hurricane or a huge salvage job such as the Costa Concordia. Such challenges bring everyone together, creating a very resilient and capable organisation, Tom Crowley tells Lloyd’s List.
DHL’s latest Global Trade Barometer has dropped by a further two points to a new index value of 45, indicating a further trade contraction for the next three months for most major economies — with the exception of India, where ocean freight volumes remain buoyant.
Opinion
The Lloyd’s List Podcast:The view from Hong Kong and Dubai: In this week’s podcast our chief correspondent Richard Clayton offers up his view from Dubai, where he has been talking smart ports, while our China editor Cichen Shen and Asia news editor Vincent Wee give us the insider’s view from Hong Kong maritime week, and more importantly the Lloyd’s List’s eagerly anticipated Innovation Forum.
From the News Desk:Beyond the tear gas in Hong Kong. Our regular round-up of the stories behind the headlines this week comes to you from Hong Kong, where the Hong Kong Maritime Week reaffirmed the strength and resilience of the city’s shipping and maritime community despite domestic troubles. The Asian shipping and financial hub’s core advantages in ship finance and the discussions among industry leaders were highlighted during the busy week.
Markets
Chinese coal import restrictions are hurting bulk carrier demand. Sudden halts in customs clearances are rapidly expanding through some key ports and look set to expand further soon, as the country’s imports are set to exceed the limit set for 2019.
The fuel price spread hit a record this month. Price differentials between compliant and non-compliant fuel oil have widened to levels not seen before this month at the world’s top bunkering hub as shipping lines embark on the mandatory low sulphur transition.
In other news
Delays in scrubber retrofits and an increase in the scrapping of older vessels should help support the boxship charter market into 2020, according to MPC Container Ships.
https://lloydslist.com/LL1130205/MPC-Container-Ships-forecasts-greater-stability-in-charter-market
China Merchants Energy Shipping is to pocket Yuan521.1m ($74.2m) having agreed to sell two Chinese-built very large crude carriers to Turkish owner Advantage Tankers.
https://lloydslist.com/LL1130206/China-Merchants-sells-two-VLCCs-to-Advantage-Tankers
Shipowners’ Club has announced its first general increase in six years, citing ongoing higher-than-budgeted deficits as the reason for the decision.
https://lloydslist.com/LL1130197/Shipowners-Club-seeks-5-rate-rise
Velesto Energy sees almost full utilisation of jack-up rig fleet in the third quarter while Icon Offshore struggles to raise charters of its OSV fleet much beyond the 50% level.
CDB Financial Leasing has agreed an acquisition deal that involves two Mediterranean Shipping Company large containerships.
https://lloydslist.com/LL1130203/CDB-Leasing-strikes-$269m-financing-deal-for-two-MSC-boxships
Gothenburg has joined a group of nine other Nordic region ports that have signed a declaration to cooperate, exchange information and share best practice on a range of environmental and climate-related issues.
https://lloydslist.com/LL1130215
Gothenburg has joined a group of nine other Nordic region ports that have signed a declaration to co-operate, exchange information and share best practice on a range of environmental and climate-related issues.
https://lloydslist.com/LL1130215/Nordic-ports-join-forces-in-sustainable-transport-drive